Yesterday was supposed to be "bloody Monday" for the defense industry, but its stocks rallied as Defense Secretary Gates outlined his latest budget. The US spends more on the military services, arms and equipment than the rest of the world's nations combined. Despite cuts in high-profile projects, Pentagon spending may go up, because, as one analyst said, "For everything they took away, they added something else." The debate will be about conventional warfare versus counterinsurgencies like those in Iraq and Afghanistan, and about jobs in congressional districts.
Image: Marine Gen. James Cartwright (R), vice chairman of the Joint Chiefs of Staff, answers a question during yesterday's press conference with Defense Secretary Gates. DoD photo: Cherie Cullen